On 6/23/14, Aravind R <[email protected]> wrote: > In recent years, several prominent corporate groups have found it > difficult to repay their loans, including the flamboyant Vijay Mallya, > whose now-grounded Kingfisher Airlines owes over Rs 7,000 crore, > mostly to public sector banks. > Sidhartha, TNN | Jun 23, 2014, 05.02AM IST > NEW DELHI: The government has asked banks to launch an offensive > against the country's top 50 loan defaulters to change the perception > that state-run lenders tend to be soft towards large borrowers while > giving little leeway to retail borrowers and SMEs. > > Top bankers told TOI that the issue was discussed by financial > services secretary G S Sandhu last week with bank chiefs from several > leading public sector players, including State Bank of India, Punjab > National Bank and IDBI Bank. > > "There is a perception, which may or may not be correct, that we don't > act decisively against corporate borrowers and the government is keen > to dispel that notion,"said a bank chief, who attended the meeting in > the finance ministry. > > Sources said the lenders have been asked to initiate all possible > action against the top 50 defaulters to send a message that the > companies cannot get away without clearing their dues to banks. On > their part, bankers are learnt to have told the government that it is > not often easy to recover the dues and they have to undergo a long > process of litigation. "Every notice is challenged in courts and it is > very tough. It is not as if we don't want to recover the dues," said a > banker, adding that often they come under pressure from the finance > ministry to restructure loans before they turn no-performing assets. > > Apart from the change of guard at the Centre, the government is keen > that banks recover their dues from defaulters as they are saddled with > a pile of bad debt, putting their credit worthiness at risk. Global > rating agencies have flagged rising level of sticky assets as one of > the major concerns for the Indian economy. > > In recent years, several prominent corporate groups have found it > difficult to repay their loans, including the flamboyant Vijay Mallya, > whose now-grounded Kingfisher Airlines owes over Rs 7,000 crore, > mostly to public sector banks. His lavish lifestyle, despite his > company's financial woes, has raised many eyebrows. Kolkata-based > United Bank of India has already served a notice to treat Mallya and > others linked to the airline as "wilful defaulters" which will choke > loan flow to all group companies. > > The other prominent defaulters in recent years include Winsome > Diamond, Zoom Developers and S Kumars Nationwide. > > The All India Bank Employees Union released a list of 406 loan > defaulters, who together owed over Rs 70,000 crore and are facing > legal action. Banks are grappling with non-performing assets of over > Rs 2 lakh crore, while loans to several large projects have been > restructured, which prevented them from turning bad debt. > > In recent weeks, the government has begun talks for initiating a > series of measures to reduce the pile of debt, including a new law > that will link the jail term to the size of the default, apart from > enabling lenders to initiate criminal action. > > Similarly, the debt recovery tribunal set up is being reworked and > discussions on a new asset management company have begun. > > TPG may buy surgical equipment company Sutures > PG -- an existing investor with about a 22% stake -- could buyout > another shareholder and India-focused private equity fund CX Partners > which has 30% ownership in the company, sources told TOI. > > Staffing companies join search for women leaders > On their part, global recruitment firms like Antal International and > Amrop are conducting in-depth analysis to map women leaders. This has > become necessary as companies are determined to fill certain > leadership posts with women. > > More Business News>> > > To manage your newsletter subscription settings, click here > Other Newsletters from TOI : > Movie Reviews | Life & Style | Top Headlines > [image] > > > -- > nothing is difficult unless you make it appear so. > > r. aravind, > > D R O in bank of baroda, > > mobile no: +91 9940369593, > email id : [email protected], [email protected]. > > > > Register at the dedicated AccessIndia list for discussing accessibility of > mobile phones / Tabs on: > http://mail.accessindia.org.in/mailman/listinfo/mobile.accessindia_accessindia.org.in > > > Search for old postings at: > http://www.mail-archive.com/[email protected]/ > > To unsubscribe send a message to > [email protected] > with the subject unsubscribe. > > To change your subscription to digest mode or make any other changes, please > visit the list home page at > http://accessindia.org.in/mailman/listinfo/accessindia_accessindia.org.in > > > Disclaimer: > 1. 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-- *Dr.B.S.M.Kumar* *Prof. Dept of Chemical Engineering* *SRM UNIV * *Hand set +91 9840139849* ** Register at the dedicated AccessIndia list for discussing accessibility of mobile phones / Tabs on: http://mail.accessindia.org.in/mailman/listinfo/mobile.accessindia_accessindia.org.in Search for old postings at: http://www.mail-archive.com/[email protected]/ To unsubscribe send a message to [email protected] with the subject unsubscribe. To change your subscription to digest mode or make any other changes, please visit the list home page at http://accessindia.org.in/mailman/listinfo/accessindia_accessindia.org.in Disclaimer: 1. Contents of the mails, factual, or otherwise, reflect the thinking of the person sending the mail and AI in no way relates itself to its veracity; 2. AI cannot be held liable for any commission/omission based on the mails sent through this mailing list..
